The draw period on my home equity line of credit expires in July of this year. I never used it but it was nice to know it was there, just in case. The bank is already contacting me, asking me to renew. The new 10 year draw period they're offering comes at a cost...a $65 annual fee. Is an annual fee the norm these days for a HELOC? Would you pay the $65 a year and stay where you're at or would you move on to another institution?

No fee on mine I got it last year.

Few things to think abut.

The lovely new tax law removes the ability to deduct interest from a HELOC. Please consult your tax advisor.

But it could still be a good way to access cash. If you look at moving, there will be application and new underwriting. There could be costs with this for appraisals and closing.

Mine went from $50 to $60 in the past year.

I pay $35 annually for the privilege of having a line available. I haven't used it in 4 years and it expires in a year. I'll probably move it from my bank to a place that doesn't charge a fee at expiration.

Had mine probably 15 years but haven't used it in over 10. No expiration and no set draw period IIRC. They just refigure payments as needed targeting a 10 year pay off. Never paid a fee. Variable interest rate, currently 3.5%. It's with a credit union so may be different.

Why would you pay a fee for a line of credit that is backed by the equity in your house?
I can see an unsecured credit card (like AE) but on your own Equity - not me.

quote:

Originally posted by Jamess1:
Few things to think abut.

The lovely new tax law removes the ability to deduct interest from a HELOC. Please consult your tax advisor.

But it could still be a good way to access cash. If you look at moving, there will be application and new underwriting. There could be costs with this for appraisals and closing.

Mine went from $50 to $60 in the past year.

This^^^^

Renewed ours this year without any annual fee. I'm with others here in that I'm not paying a fee for drawing against my own equity.

im a lender and my bank does not charge an annual fee on residential HELOCS but we also have very conservative LTV/CLTV values. My personal HELOC with a local CU was the same rate at 60% as it was at 80% CLTV no annual fee.

They are around just shop. you should also be able to find Prime+0 or prime minus up to 80% easily. Prime + on a primary res is no good.

quote:

A few things to think about.

The lovely new tax law removes the ability to deduct interest from a HELOC.

If fewer people keep their HELOCs, banks may offer better terms to retain and attract new clients.

My Prime minus 0.51% expires in 18 months. Their $50 fee has been applied without recision only in recent years, the first decade having been waived.